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RE: What happened to the Steem price? what made it drop so drastically. Explanation. Theories. Conclusion.

in #steem9 years ago

85000$ is nothing.. STEEM is naturally devaluating as it doubles every year. Therefore there is no reason to take a long position on STEEM, unless you believe that it's value grows considerably harder that the natural rate of devaluation. It's not an attractive buy for traders that are not focussed on intraday movements. The main reason to buy STEEM is to power up on the site, so it's related to the utility of having a strong position within the STEEM community. Also, if you choose not to power up, and wish to sell, than there is a natural force to sell sooner than later, thus selling for a price that guarantees quick conversion.

STEEM is not a speculation coin, it's a utility based framework.

My expectation is that we will only see an increase in STEEM value, if the value of the community more than doubles each year. That should be our joint target ;)